The bloodsucking effect of the altcoin market is becoming increasingly obvious, especially during periods of high volatility. Looking back at the capital flows in the meme sector, it's like a new script every day, and the speed at which funds rotate is dizzying.

Recently, many friends who have privately messaged me have been asking, 'What should I do if I'm stuck with XX coin?' In fact, many people do not set stop-loss orders when opening contracts. Once the market reverses, they are instantly trapped, and may even be forced to liquidate. The stop-loss price is essentially the liquidation price; if you're lucky, you might barely hold on and see a rebound, but if you're unlucky, you'll really only be facing liquidation.

The real problem is that many people do not understand the risks of contracts and are unwilling to set stop-loss orders.

Everyone always thinks that if they are trapped, they might be able to hold on and perhaps break even. Once or twice, they might escape a disaster by luck, but sooner or later, there will be a complete disaster, which is a lesson I have personally experienced.

So, here's a piece of advice for all friends trading contracts: open positions within your risk tolerance and never ignore setting stop-loss orders!

Set stop-losses, set stop-losses, set stop-losses; this is the most basic risk management.